News & Media

What’s wrong with wealth?

January 23, 2018

Lan, 32, works in a factory in Dong Nai province, southern Vietnam, which produces shoes for global fashion brands. She works on 1200 pairs of shoes a day, yet she can’t afford to buy even one pair for her son on the amount she earns each month. Photo: Sam Tarling/Oxfam

Blog post by Nick Bryer
Oxfam Global Inequality Lead (Davos)

Oxfam’s new inequality report is bound to ruffle feathers at the World Economic Forum – the annual get together of the rich and powerful in Davos, Switzerland.

Some will accuse us of being ‘anti-rich’, and of focusing on billionaires because we’re jealous of their success. They will say we should be focusing on the hundreds of millions of people who are still trapped in poverty, rather than on those at the top who are doing so very well for themselves.

Two sides of the same coin

Don’t be fooled. We are absolutely focused on people living in poverty. What has become increasingly clear over the years, however, is that there’s no way we’re going to end poverty unless we tackle extreme wealth too. They are two sides of the same coin.

The reality is that all too often the fortunes of the super-rich have been amassed at the expense of the rest of us – and especially the workers and producers who are at the bottom of every global supply chain.

An economy for the rich

The insatiable pursuit of profit by giant corporations and their rich shareholders is fuelling an epidemic of tax dodging that is depriving developing countries of at least $170 billion every year – money that should be going to schools and hospitals. It is driving down wages and working conditions across the globe, leaving hundreds of millions of people in dangerous and difficult jobs, struggling to earn enough to get by.

It is no coincidence that most of these people are women.

The effects of inequality

Women like Lan, who is a garment worker in Vietnam, working in a factory far from her home. Lan’s pay is so low, and she has to work so much overtime, that she goes months at a time without seeing her young children. She will earn in her lifetime what a CEO of a top garment company earns in just ten days. Or Dolores, who works in a US poultry factory, and has to wear diapers to work because she isn’t allowed to take toilet breaks. And that’s in the richest country on earth!

A broken system

So yes, if people are getting rich at the expense of others, we have a problem with that.

If companies are paying out huge dividends to their rich shareholders and bumper pay packets to their top executives, while workers in their supply chains aren’t earning enough to feed their families, then yes, we have a problem with that.

If billionaire fortunes are the result of monopolies, of crony capitalism, of vast inherited wealth – the gilded results of a broken economic system that rewards wealth rather than work – yes, we have a problem with that.

Of course, it is true that some billionaires contribute a lot to our societies. Many are pioneers in their fields, innovators and risk-takers who have created things we can all enjoy and benefit from. Many of them are very generous philanthropists, giving away vast sums of money to help those less fortunate than them.

But this doesn’t change the fact that they are the beneficiaries of a broken economic system that is enriching them first and foremost at the huge expense of millions of others who remain trapped in poverty.

Toward a fairer, more human economy

We need a different kind of economy now. One that shares value more fairly. One that treats women as well as it treats men. One that increases prosperity and well-being for all, without trashing the planet in the process. An economy that rewards work, not wealth.

We need to see governments acting in the interest of ordinary workers – implementing and enforcing living wages, limiting excessive rewards for investors and top executives, regulating new technologies to ensure they benefit the majority, cracking down on tax dodging, investing in healthcare and education for all.

And we need businesses that are ready to act in the interests of their workers and wider society, and not just rich shareholders. That means more responsible tax behaviour, it means ensuring better working conditions, it means no longer paying out big dividends until they can be sure that everyone in their supply chain is being paid enough to live a decent life.

Say goodbye to poverty

These are necessary, practical steps that can help us consign both extreme wealth and extreme poverty to the history books.

You can help spread the word and join the growing global demand for governments and big businesses to do things differently.

Richest 1% of Kiwis bagged 28% of all wealth created last year

January 22, 2018

A staggering 28 per cent of all wealth created in New Zealand in 2017 went to the richest 1 per cent of Kiwis.

While the 1.4 million people who make up the poorest 30 per cent of the population got barely 1 per cent, according to new research released by Oxfam today.

The research also reveals that 90 per cent of New Zealand owns less than half the nations wealth.

The research forms part of a global report released to coincide with this week’s annual meeting of political and business leaders at the World Economic Forum in Davos, Switzerland. New Zealand Trade Minister David Parker is scheduled to attend the gathering, which focuses on global politics, economics and social issues.

The full report, called Reward Work, Not Wealth and released at 1pm this afternoon [Monday], will reveal how the global economy enables a wealthy elite to continue to accumulate vast wealth while hundreds of millions of people struggle to survive on poverty pay. It will reveal how globally big business and the extremely wealthy are fuelling the inequality crisis by avoiding taxes, driving down wages for their workers and the prices paid to producers, and investing less in their business, say Oxfam.

Last year, Oxfam’s research revealed two New Zealand men owned more wealth than the poorest 30 per cent of the adult population; this startling statistic remains the same. Graeme Hart, New Zealand’s richest man, has increased his fortune by US$3.1 billion in 2017 to US$9.5 billion (up from $US6.4 in 2016).

Rachael Le Mesurier, Executive Director at Oxfam New Zealand says: “Trickle-down economics isn’t working. The extreme gap between the very rich and the very poor in our country is shocking. As new wealth is created it continues to be concentrated in the hands of the already extremely wealthy.

“2017 was a global billionaire bonanza. This is not a sign of success but of economic failure. Experts are clear, high levels of inequality are bad for economic growth – for everyone except the small number of super-rich, who on a global scale are often able to translate their disproportionate control of resources into disproportionate influence over political and economic decision making. This can lead to policies that are geared towards their interests, often at the expense of the majority.

“To end the global inequality crisis, we must build an economy for ordinary working people, not the very few rich and powerful.
“Kiwis love fairness, not inequality. Governments can tackle extreme inequality here and globally by ensuring the wealthy and multi-nationals pay their fair share of tax by cracking down on tax avoidance – then using that money to make our country and the global economy a fairer place.”

“Let’s have a national conversation about tax. Labour’s Tax Working Group and the opportunity it provides New Zealand to examine the structure, fairness and balance of the New Zealand tax system, is a huge opportunity to ensure our economy reflects the fairness that is innately Kiwi. It also offers an opportunity for New Zealand to provide an example to many developing countries in using a fairer tax system to reduce the extreme gap between the very rich and the very poor. Oxfam’s report includes a strong list of recommendations, backed up by experts, for both governments and multi-nationals that can help us achieve this.”

The two richest New Zealanders are Graeme Hart and Richard Chandler. They own wealth of US$9.5billion and US$1.9billion respectively.

Oxfam’s 2018 report is the most recent in a series of reports that has analysed economic inequality and its drivers. Each of these reports was published to coincide with the annual meeting of the World Economic Forum in Davos. Each year the report has included an analysis of wealth inequality which draws on data from the Credit Suisse Global Wealth Databook and the Forbes list of billionaires. This Credit Suisse Databook is produced annually and is widely recognised as providing the best available data on global wealth.

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Reward Work, Not Wealth

January 19, 2018

Last year saw the biggest increase in billionaires in history, one more every two days.

This huge increase could have ended global extreme poverty seven times over. 82% of all wealth created in the last year went to the top 1%, and nothing went to the bottom 50%.

Dangerous, poorly paid work for the many is supporting extreme wealth for the few. Women are in the worst work, and almost all the super-rich are men. Governments must create a more equal society by prioritising ordinary workers and small-scale food producers instead of the rich and powerful.

Read report here.

Oxfam welcomes NZ’s move towards Zero Carbon future

December 23, 2017

The Zero Carbon Act campaign partners welcome the first concrete steps the Government has taken today towards strong legislation for a safe climate future, with its announcement of the plan for developing the law and establishing an independent climate commission.

The partner organisations – Generation Zero, WWF-New Zealand, Forest & Bird, Oxfam New Zealand and ActionStation – are urging New Zealanders to get involved and have their say in the Zero Carbon Act consultation process.

The groups say it is good to know the Government’s roadmap for developing and passing the Zero Carbon Act, and congratulate the Government for setting this out transparently.

The “very generous” timeframe will give plenty of time for evidence and views to be considered and a cross-party consensus to be formed, ensuring the Zero Carbon Act is built to last.

“Oxfam supports this considered and thoughtful timeline. This must be legislation that has full cross-party support and will be an Act of Parliament that will hold our current and future generation of leaders to account,” says Oxfam New Zealand Executive Director Rachael Le Mesurier.

“We’re very excited for all New Zealanders to have the opportunity to get involved in creating this vital law which will guide New Zealand’s transition to a zero carbon future,” said Generation Zero’s campaign convenor Lisa McLaren.

“It’s a good opportunity for people to have their voices heard to ensure we have strong and robust laws to ensure a safe climate future for everyone,” says ActionStation spokesperson Rick Zwaan.

“We know it’s 100% possible for New Zealand to reach net-zero emissions by 2050. Kiwis up and down the country are rising to the challenge, in their lives and work. The Zero Carbon Act will be essential in giving everyone, and New Zealand businesses especially, the certainty and predictability they need to make smart, future-proof decisions,” says WWF-New Zealand campaigner David Tong.

“It’s critical everyone gets behind this and makes sure politicians from across Parliament know that climate change is one issue New Zealanders are not prepared to take risks with. You’ve only got to look at the two reports released last Friday, highlighting the vulnerability to climate change of not only billions of dollars worth of infrastructure, but also people and of nature, to see why this is so critical,” says Forest & Bird climate advocate Adelia Hallett.

Meet the team: RescueUs

December 20, 2017

From left: Rebecca Dakin, Dianne Bulled, Liisa Jones and Andy Ross. Photo: Rebecca Dakin.

From fighting fires to responding to local emergencies, this group of Whakatāne volunteers have a new challenge ahead of them – walking 100 kilometres to help fight poverty.

All four team members met through volunteering for Whakatāne Rural Fire and New Zealand Emergency and Rescue Unit 17.

“We have Liisa who is our district-wide SPCA inspector, and got heavily involved in the Edgecumbe floods. We’ve got Dianne – who is involved in things like Whakatāne Athletics and Harriers Club and organising the Toi’s Challenge. Dianne is our team leader and an experienced adventure-racing lady!

“Then we’ve got Andy – he is just fantastic. He started as a mountain guide, then got into adventure sports like kayaking, and is looking forward to the different challenge that this event involves.

“Then you’ve got me – I am a Whakatāne District Council worker and I volunteer for the SPCA,” says team member Rebecca Dakin.

The team love giving back to their local community through volunteering their time and skills, and it was this that got them hooked on Oxfam Trailwalker.

“Most of us come from community-focused involvement. It’s our community, and it’s our home, and we want to help. You feel like you’re making a difference if you can get out there and do something to help someone.

“I’ve done quite a few half marathons now but am just looking for something to keep me going and a little bit of a challenge. I volunteered last year at [Oxfam Trailwalker] and I saw the teams and thought ‘wow, that’s something I really want to do.’

“Oxfam is a good cause… anything for charity is something that generally we’ll get involved in.”

On paper, the length of the trail can seem like a very long way – but Rebecca is looking forward to challenging herself to something new.

“To me, personally it’s a bit daunting, but I think to be part of such a neat team with just such nice people, I really want to get over the end for them.

“The mental idea of completing 100 kilometres in one go and keeping the stamina to drive ourselves across the finish line is the focus. And the highlight will be just getting over the finish! I’m quite excited about walking through the night as well, just because it’s something I’ve never done.”

As a Whakatāne District Council employee, Rebecca knows what Oxfam Trailwalker gives to the community – and what the community gives back to Oxfam Trailwalker.

“I think it’s absolutely fantastic. Any event like this is brilliant to give our community some exposure and just to show exactly what a slice of paradise it is here.

“I really do think that it’s something that is embraced and that the community is looking forward to.”

The team have started training, and living in Whakatāne, they are lucky enough to be able to train on the event’s trails. They’re also tracking along well with their fundraising thanks to some very generous local businesses.

“We all work at really cool places that have already said that they’ll sponsor us, so we’re pretty lucky in that regard.

“We want to say a massive thank you to the team at Whakatāne Outdoors, Whakatāne SPCA, and our Rural Fire and Emergency Response Units. They’ve just been great so far – it’s really nice.”

A massive thank you to team RescueUs for their enthusiasm and support of Oxfam Trailwalker! Visit their team page or make a donation here.

Meet the OTW team: Welly Queen

December 15, 2017

Pictured, from left: Lucy Liu, June Cui, Jennifer Ma, Sophie Chen.

It was the Great Lake Relay in Taupō that brought the four members of team ‘Welly Queen’ together. They all met there in February, connected over their love of running trails, and decided to challenge themselves as a team to the 100km Oxfam Trailwalker.

The team is made up of four ladies – Sophie, Lucy, Jennifer and June – who are originally from China but who now reside in Wellington, which they call “the coolest little capital in the world.”

Sophie Chen, team leader and sales engineer, is trail-running obsessed. She challenged herself to an endurance race in Italy this September – Tor des Geants – and completed 148 kilometres and 9500 metres of elevation gain in 55 hours.

“I am a big fan of ultra-trail running. I want to help children living in poverty to have access to clean water.”

Lucy Liu, a chartered accountant, has been running regularly since 2015, this year completing the 80 kilometre Round the Mountain race in Taranaki in 11 and-a-half hours.

“Running is contagious. So is sharing! It dawned on me that regardless how little we share, we are elevating vulnerable people’s living conditions.”

Jennifer Ma, a postgrad student who first came to New Zealand in October last year, completed her first half marathon in Queenstown last year, and her first full one in Auckland this year.

“Running is who I am, what I am, why I am. I believe giving is the greatest act of grace.”

June Cui, an IT consultant, got into trail running early this year, completing a half marathon in Wellington in June.

“I know I’ll never be able to help all the people living in poverty, but by running, at least I can help some.”

Challenging themselves physically and contributing to the fight against poverty are things that the team have always wanted to do.

“We feel very fortunate to live in New Zealand, a country with stable economy and fabulous environment. We are also aware that there are still many people around the world living below the poverty line without access to clean water, basic healthcare and education.”

The girls have identified two big focuses for their team, the first being ensuring that they’re prepared for such a long distance. With a target time of 24 hours, they have been training together since November to make sure they’re physically ready to hit the trail for a full day and night.

Their second big focus is working together as a team to complete the challenge. Each team member has different levels of experience and fitness, so they are prepared to look out for and make allowances for each other in order to cross the finish line together.

The team has a big fundraising target and are determined to smash it, so they can provide as much support to people in the Pacific as possible.

“We have set the target at $5,000. None of us have any local fundraising experience in New Zealand, but we believe that our passion, planning and execution will surely help us beat the target.”

Welly Queen is hosting a CrossFit fundraiser class in Alicetown on 13 January 2018. To attend, RSVP to [email protected]. More details here.

A big thank you to Welly Queen for their enthusiasm and dedication to Oxfam Trailwalker!

If you wish to make a donation to the team you can do so here.

Follow the team’s progress via their Facebook page here.